Higher home prices help us move on

Published: Thursday, February 21, 2013 at 1:00 a.m.

Last Modified: Wednesday, February 20, 2013 at 8:38 p.m.

Rising home prices could spark a surge in relocations by job-seeking homeowners this year, which could help lower unemployment rates, says employment expert Challenger, Gray & Christmas Inc.

Facts

"With home prices bouncing back, even those who may now simply break even on a home sale might consider moving to a region where jobs are more plentiful. This could spark a more rapid decline in the unemployment rate over the next year."

The company noted in recent reports that home prices nationwide showed their biggest year-over-year gains in more than six years.

"One factor that has kept unemployment rates high has been the inability of underwater homeowners to relocate for employment opportunities," said firm chief executive John A. Challenger.

"With home prices bouncing back, even those who may now simply break even on a home sale might consider moving to a region where jobs are more plentiful. This could spark a more rapid decline in the unemployment rate over the next year."

As of December, more than 130 metropolitan areas had unemployment rates of 8 percent or higher. About 20 metro areas reported unemployment below 4.5 percent.

The rate in Sarasota-Manatee-Charlotte counties stood at 7.8 percent during December.

"It is likely that employers in these low-unemployment regions are actually struggling to find available workers with the skills needed to fill job openings," Challenger said.

Relocation for employment opportunities has been difficult in this recovery due to the collapse in home values. At the end of the third quarter, 22 percent of residential properties remained underwater, according to the latest available data from real estate analytics firm CoreLogic.

But December marked the 10th consecutive month of increased home prices, and the biggest gain since May 2006, CoreLogic said.

"As more and more homeowners reach or even exceed the break-even point on their mortgages, they will gain the freedom to explore job opportunities beyond their immediate surroundings," Challenger said.

<p>Rising home prices could spark a surge in relocations by job-seeking homeowners this year, which could help lower unemployment rates, says employment expert Challenger, Gray & Christmas Inc.</p><p>The company noted in recent reports that home prices nationwide showed their biggest year-over-year gains in more than six years.</p><p>"One factor that has kept unemployment rates high has been the inability of underwater homeowners to relocate for employment opportunities," said firm chief executive John A. Challenger.</p><p>"With home prices bouncing back, even those who may now simply break even on a home sale might consider moving to a region where jobs are more plentiful. This could spark a more rapid decline in the unemployment rate over the next year."</p><p>As of December, more than 130 metropolitan areas had unemployment rates of 8 percent or higher. About 20 metro areas reported unemployment below 4.5 percent.</p><p>The rate in Sarasota-Manatee-Charlotte counties stood at 7.8 percent during December.</p><p>"It is likely that employers in these low-unemployment regions are actually struggling to find available workers with the skills needed to fill job openings," Challenger said.</p><p>Relocation for employment opportunities has been difficult in this recovery due to the collapse in home values. At the end of the third quarter, 22 percent of residential properties remained underwater, according to the latest available data from real estate analytics firm CoreLogic.</p><p>But December marked the 10th consecutive month of increased home prices, and the biggest gain since May 2006, CoreLogic said.</p><p>"As more and more homeowners reach or even exceed the break-even point on their mortgages, they will gain the freedom to explore job opportunities beyond their immediate surroundings," Challenger said.</p>